Question:
If a church owns a home, separate from the parsonage, and would like to lease it to one of its employees, are there any rules the church should be aware of? How will this affect the church's exempt status?
Answer:
A November 14, 2012, blog post addresses this question.
http://ministrycpa.blogspot.com/2012/11/church-renting-building-unrelated.html
Based on our experience, real estate tax assessors in most municipalities have not considered the use of a tax-exempt church home by a church employee to be a violation of the church's tax-exempt purposes. Therefore, the property has typically not been placed on the municipal real estate tax rolls. The church is well advised to inquire with the local municipality assessor for his or her interpretation.
If a church owns a home, separate from the parsonage, and would like to lease it to one of its employees, are there any rules the church should be aware of? How will this affect the church's exempt status?
Answer:
A November 14, 2012, blog post addresses this question.
http://ministrycpa.blogspot.com/2012/11/church-renting-building-unrelated.html
Based on our experience, real estate tax assessors in most municipalities have not considered the use of a tax-exempt church home by a church employee to be a violation of the church's tax-exempt purposes. Therefore, the property has typically not been placed on the municipal real estate tax rolls. The church is well advised to inquire with the local municipality assessor for his or her interpretation.
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